STAR LAKE SCIENCE(SH:600866) Haitong Securities International·2025-05-09 08:17Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 9.09, representing a potential upside of 15% from the current price of RMB 7.64 [1][9]. Core Insights - The company's net profit attributable to shareholders for 2024 is projected to be RMB 943 million, a year-on-year increase of 39.12%, while the net profit after non-recurring items is expected to grow by 57.07% to RMB 1.14 billion [1][9]. - The revenue for 2024 is forecasted at RMB 17.33 billion, a slight decline of 0.23% year-on-year, primarily due to lower product prices [1][9]. - The company plans to distribute a cash dividend of RMB 0.38 per share, totaling approximately RMB 631.36 million, which accounts for 66.94% of the net profit attributable to shareholders [1][9]. Financial Summary - The company achieved a net profit of RMB 678 million in 2023, with projections of RMB 943 million for 2024, RMB 1.32 billion for 2025, RMB 1.43 billion for 2026, and RMB 1.60 billion for 2027 [3][9]. - The earnings per share (EPS) are expected to increase from RMB 0.41 in 2023 to RMB 0.57 in 2024, RMB 0.79 in 2025, RMB 0.86 in 2026, and RMB 0.96 in 2027 [3][9]. - The company's return on equity (ROE) is projected to rise from 9.0% in 2023 to 15.0% in 2025, maintaining at 14.8% in the following years [3][9]. Major Projects - The company is advancing its 600,000-ton corn deep processing and cogeneration project, aiming for trial production by the end of 2025, with a total investment of RMB 3.71 billion [10]. - The project includes a processing line for producing 115,000 tons/year of various amino acids and related by-products [10]. - Additionally, the company is progressing with the Zhaodong nucleotide project, which involves a self-funded investment of RMB 167.29 million for a 3,500-ton product upgrade over 16 months [10].